London hotel investments to soar to record high in Q1 2020


London hotel investments may be set to reach a record high in Q1 2020, international real estate advisor Savills has forecast.

The volume of investment into London hotels could hit £1.5bn in the first quarter of the year. This could lead to a record year overall.

This will be welcome news for the industry after a difficult 2019. Savills also reports that last year UK hotel transactions reached £4.64bn in 2019, down 42% year-on-year but 11% above the ten year average.

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Furthermore, overseas investors were responsible for 59% of all London hotel investments, with the top three by country being, Hong Kong, Thailand and Israel.

Rob Stapleton, director of Savills hotels team, commented: “Investor confidence in the UK hotel market remains high and whilst political uncertainty in 2019 had an impact on overall deal volumes, yields remained low highlighting that, for the right assets, the UK continues to be a key focus for emerging hotel brands and international capital.

“We have already noted a marked increase in investor enquiries since the General Election result and anticipate this to translate into increased investment activity across the UK hotel market in 2020, with several notable transactions expected to transact in the first half of the year.”

Tim Stoyle, head of valuations of Savills hotels team, commented: “Looking forward to this year we expect to see more stock coming to market across all grades of accommodation but primarily driven by demand for the budget and four-star segments,

“Demand for these assets in London and in core locations across the rest of the UK will be underpinned by the operational performance resulting from the growth of the staycation market, as well as the continued growth in international tourist numbers.”

In the second quarter year, Christie & Co was selected to sell three London hotels in prime locations. Read more below:

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Sam Lewis

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